It’s a Blue, Blue Christmas for diesel car makers in India

M&M TO BE WORST HIT BY NGT BAN ON DIESEL VEHICLES IN DELHI

By: P.Tharyan

Dec 13 2015

Leading SUV manufacturer in India, Mahindra & Mahindra
will be the worst hit by the recent ban on diesel vehicles in the capital city
of Delhi from December 11, 2015 to January 6, 2016 as ordered by the National
Green Tribunal (NGT). Since the ban is likely to end by January 6, 2016, car
dealers will in all probability accept bookings and deliver the diesel vehicles
post that ban period. But the 26 days of ban will definitely have an impact on
the sales of the popular diesel vehicles.

Delhi is the largest buyer of passenger vehicles in the
country and diesel is a favourite among its residents, be it individual buyers
or taxi fleet operators. December end and January beginning are periods when
Delhi witnesses frenetic purchase of cars by consumers.

Mahindra’s entire fleet comprising popular models like Bolero,
Quanto, Rexton, Scorpio, Thar, TUV 300, Verito, Verito Vibe, XUV 500 and Xylo only
has diesel engines powering them. It has no petrol powertrain in its portfolio.
Isuzu Motor of Japan that makes the Isuzu D-Max and MU-7, Mitsubishi with its
Pajero model and Force Motors which sells the Force One and Gurkha too have only
diesel engines, but their sales in Delhi is miniscule compared to that of M&M.
Car majors like Audi, BMW, Chevrolet, Ford, Honda Car India, Hyundai, Jaguar
Land Rover, Maruti Suzuki, Mercedes-Benz, Mini, Nisssan, Skoda, Toyota, Tata
Motors, Volkswagen and Volvo Auto India are likely to be severely affected by
this diesel ban. Almost all of Volvo’s models sold in India have a diesel mill
and ironically their cars are considered to be the safest and cleanest cars in
the world!

On December 11, 2015, the NGT had banned registration of
new diesel vehicles till January 6, 2016 in Delhi amid rising concerns over
pollution in the city. It also told the government not to renew the
registration of diesel vehicles more than 10 years old. The NGT decision came a
day after Supreme Court said it would examine if diesel vehicles could be
banned in the capital. January 6, 2016 is also the next date of hearing on a
petition against air pollution in the city.

The three prime sources of air pollution in Delhi as well
as NCR, according to NGT are burning of municipal waste, dust generated by
construction and vehicular pollution.
The NGT had addressed the issues related to waste burning and
construction dust in its previous orders. Sadly, waste burning still continues
while construction continues in full force in every corner of Delhi and NCR.

Motown India magazine compiled a list of vehicles that will be affected
by this diesel ban.

Despite the NGT ban, no auto major has gone on record to
say how serious this matter is. However, the Society of Indian Automobile
Manufacturers (SIAM) has stated that "While SIAM respects the views
of the NGT, we believe that this order is not based on scientific facts or
study.” "It is not proper to stigmatise diesel technology based on the
mis-information spread by the interested lobbies, especially when these comply
to all the Government of India notified norms,” a SIAM statement read.

The only person to stick his neck out and put things in
the right perspective was Dr. Pawan Goenka, Executive Director, Mahindra &
Mahindra Ltd. He stated that “diesel vehicles have become the whipping
boy” and are being seen as the “biggest villains”. “Over the years diesel
fuel and vehicles have become a favourite whipping boy in our country," he
said. He asked that "when our product is meeting all laws of the land how
can it be banned overnight.”

Dr Goenka’s company Mahindra & Mahindra is perhaps
the only automobile major in India that has in its portfolio only diesel
engines and many of its diesel vehicles like Scorpio, XUV 500, the newly
launched TUV 300 and Bolero are extremely popular in Delhi in the passenger car
segment.

Dr Goenka said the debate on pollution was not new and in
fact started in 1999 when the Supreme Court made it clear that no distinction
was to be made between diesel and petrol fuel when it came to curbing
pollution. “In 1999 an application was made to the Supreme Court to ban diesel
vehicles in Delhi and the court made a decision that we implement emission
norms and not look at the fuel diesel or petrol. The court said that BS II
norms should be implemented immediately for diesel and petrol. Therefore the
question of differentiating diesel and petrol was kind of settled by the
Supreme Court in 1999. Since then the emission norms were made tighter for both
diesel and petrol and therefore I don’t know why once again diesel is being
looked at as the culprit even thought the vehicles sold today are meeting all
the emission norms being prescribed by the Government of India,” he pointed
out.

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